Two Cycle Billing

If you’re in a position to close some of your credit cards, you’ll want to be aware of this practice. Most credit card companies do it - it’s called “two-cycle billing”.  What this means is that you get charged interest on balances two months back, not just one. If you pay a card down to zero in May, look for a bill in June, for April’s interest.  Almost all of them do it.  What this means is that you don’t have a closed-out card until you have two consecutive zero-balance bills. Not just one. 

So if you pay off the balance on your statement and then call to close your account, it won’t close because of the interest that will hit.  Even though  the person on the phone tells you they closed it, it won’t be closed becaused it’ll “wake up” when the interest hits the balance.

Your best bet is to pay off your card and then let it sit for two cycles until ALL the interest and charges are completed.  You can then call or write to close the card with confidence that it’ll actually happen.

Rich

Where’s my Stimulous Payment?

The IRS added this little feature to their web site that will tell you when to expect your stimulous payment.  It doesn’t work for everyone though.  Apparently if you payment is scheduled for more than two weeks out it may not show it.  Check it out here…

https://sa2.www4.irs.gov/irfof/IRServlet?app=IRACTC

Economic Stimulous Checks

In case you were wondering when you’re going to recieve your money, the federal government has released a timetable for when taxpayers should expect a 2008 economic stimulus payment.

A person whose 2007 tax return is received and processed by April 15 will receive his or her stimulus payment sometime between May 2 and mid-July, depending on the recipient’s last two Social Security number digits and whether he or she gave direct-deposit information in the 2007 tax return.

The following is the timetable for people whose 2007 returns are processed by April 15 and who gave direct-deposit information in those returns:

Last two Social Security number digits between 00-20, the payment should be sent to the bank account by May 2.

Last two Social Security number digits between 21-75, the payment should be sent to the bank account by May 9.

Last two Social Security number digits between 76-99, the payment should be sent to the bank account by May 16.

The following is the timetable for people whose 2007 returns are processed by April 15 and who did not request direct deposit:

Last two Social Security number digits between 00-09, the payment should be in the mail by May 16.

Last two Social Security number digits between 10-18, the payment should be in the mail by May 23.

Last two Social Security number digits between 19-25, the payment should be in the mail by May 30.

Last two Social Security number digits between 26-38, the payment should be in the mail by June 6.

Last two Social Security number digits between 39-51, the payment should be in the mail by June 13.

Last two Social Security number digits between 52-63, the payment should be in the mail by June 20.

Last two Social Security number digits between 64-75, the payment should be in the mail by June 27.

Last two Social Security number digits between 76-87, the payment should be in the mail by July 4.

Last two Social Security number digits between 88-99, the payment should be in the mail by July 11.

Taxpayers may be eligible for one-time stimulus payment of up to $600 ($1,200 for married couples filing jointly). There also is a $300 per child payment for qualifying children younger than 17.

Free Credit Report

In case you haven’t heard of this yet, you can order a copy of your credit report for free once a year from each of the three credit reporting agencies.  What I do is about every four months, I order from a different agency.  Then, after a year is up, I’m ready to start all over again.  With this method I can stay on top of what’s being reported.  You can read all about it at this government link http://www.ftc.gov/bcp/conline/pubs/credit/freereports.shtm.

Or, you can go directly to the site and order you free credit report from https://www.annualcreditreport.com/cra/index.jsp

I always like to go to the government site first and then click the link to get my report.  This is largely because there are plenty of scam sites or others that charge fees that have a similar name.

Cheers!

FICO 08

For those that  worship at the alter of the great FICO, there’s a new system coming out for 2008.  According to Fair Isaac it will be more forgiving of occasional slips by consumers, but will take a harder line on repeat offenders.  The idea is that it will do a better job predicting who is likely to default.

Consumers should start seeing the new scores coming out this spring.  Those who currently have a bad FICO score will likely have a worse score and those will a good score will likely see an improvement.   Not sure how this would affect me since I basically don’t have any debt except for a mortgage.

All I know for sure is that if you’re caught up trying to please the FICO god you’ll be screwed in the long run.  The best move is to pay off your cars, your credit cards, and any debts that are out there.  You’ll never have to worry about what Fair Isaac is up to.

Eliminate Junk Mail (or at least reduce it)

Just ran across this link.  If you’re tired of receiving tons of direct mail advertising aka. junk mail, you can register at this site and opt out of the ones you want or opt in to lists that you’re not on.  The bummer is that it’ll cost you $1 for it.  In my book it’s a great investment, however  Just think of the time you spend sorting through the crap that comes in the mail.  You’re forced to open every one of them because they intentionaly make themselves look like bills.  Check it out…

https://www.dmachoice.org/MPS/mps_consumer_description.php#how_to